Information on the PEM Convention
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The PEM Convention (Regional Convention on pan-Euro-Mediterranean preferential rules of origin) sets out common rules of origin for goods under numerous free trade agreements between countries in Europe and the Mediterranean region.
The rules determine whether a product qualifies as originating goods and can therefore benefit from preferential tariff treatment, such as reduced customs duties or duty-free importation.
The PEM Convention applies to rules of origin in most free trade agreements to which Iceland is a party with countries in Europe and the Mediterranean region. The rules provide a common framework that ensures the consistent application of rules of origin among the contracting parties.
Responsibilities of businesses
Exporters are responsible for ensuring that:
proofs of origin and origin declarations are issued correctly,
the requirements of the rules of origin are fulfilled, and
the necessary documentation is retained to verify origin.
Incorrect or insufficient information may result in denial of preferential tariff treatment or recovery of customs duties.